Great Park auditors get more time

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Auditors looking at 85 Great Park contracts, each worth more than $100,000, will get more time to finish a performance audit.

The work was supposed to be done by Oct. 16 at a cost not to exceed $240,000, according to the contract awarded in June to Newport Beach-based forensic auditing firm Hagen, Streiff, Newton & Oshiro, Accountants PC.

More than $200 million has been spent developing a small portion of the roughly 1,400 acres of the former El Toro Marine base.

Last week, a city subcommittee approved extending the due date until Jan. 1. The extension won't increase the firm's budget, said Irvine Councilwoman Christina Shea, a member of the subcommittee.

Shea said there was a delay in getting volumes of documents to auditors and attempts to reach some of the largest contractors has proved difficult since they've enlisted legal counsel.

The contractors disagree.

Shea said contractors – including the public relations and marketing firm of Forde & Mollrich; the office of Ken Smith, who was awarded the original contract to design the Great Park's master plan; and others – have not been cooperating or responding to auditors and have instead had lawyers request questions in writing.

“If I had nothing to hide, I would not have a problem discussing my involvement,” Shea said.

Stu Mollrich of Forde & Mollrich said Shea's contention that the firm has not been responsive is not true.

He said he first heard from the auditors on Oct. 9 and he responded the next day requesting they send questions to him in writing. As of Monday, he hadn't received any questions, but added that he had been traveling since Oct. 17.

Smith said he got an email from the auditing firm on Oct. 8 and responded the same day, letting the auditor know that the Great Park Design Studio that had the contracts was a joint venture between his office and Gafcon Inc.

Gafcon's lawyer talked with the auditor the next day and said the design studio was “glad to cooperate with the audit and in keeping with the practices of the last two city audits was requesting that questions and requests for documents or information be provided in writing so the (joint venture) could provide complete responses,” Smith said in an email.

That was the last he heard regarding the audit.

Shea said that if the contract with the auditing firm needs to be extended another year, she would be willing to do so.

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